If you need to save a little here and there, this list might help you.
I stumbled upon an interesting article from a guy who lives a good life and is fairly frugal. I would say that we are very similar. He doesn’t live in the US. so I thought I’d try and get a feel for what people are spending on some basic things that could be improved or eliminated if needed. I got some great responses and I averaged the expenses to get some numbers. you may not spend that much or you may exceed these numbers. The point is to look at ways to save money and not necessarily live in a box.
#1 Cable TV. Ours is essentially FREE. It makes our internet cheaper. The only thing I need is the internet. If my internet and cable were separated I could easily live without T.V. I rarely watch TV. We watch mostly movies on DVD or T.V. Online. This is a booming new way to watch movies, and T.V. They are a day old but I could care less. My favorite site is www.hulu.com all the major networks have their shows online as well. Watch what you want when you want. Average reader cost $62.60 / month.
#2 Going to plays, shows, Opera. I love to go to plays, but if you are trying to save money it is a extra expense you can easily skip. Average reader expense $75 / month.
#3 Going to Movie Theaters. The last movie I went to I took my kids to see BOLT. It cost me $40. Luckily the kids enjoyed it. This is where DVD’s are king. Average reader expense $30 / month.
#4 Groceries. We don’t buy soda, or almost anything from the middle isles of a grocery store. I think people can save a bundle here. I think fruits and veggies are more expensive but you eat less and because you are not only saving money not buying junkfood but you will also be saving on insurance and doctor bills. That’s tough to quantify but I know it can be hundreds if not thousands. Average Reader Grocery bill $84.21 per person.
We average $85 / person so we can call this one a wash, this difference will be in insurance and doctor visits. Skimping on quality food isn’t something we do because so many other things depend on nutrition and this is the foundation of health. Health is not an area to skimp. Everything you do in life depends on your health. If you can buy from a local farmer / farmers markets even better. You get better food at a lower cost, plus, you help the environment.
#5 Gym Membership. Most people don’t need one. You can get a great workout at home for free. Average reader expense $35 / month
#6 Cars. By the demise of one of our cars, we are down to one mini-van. We decided to not replace it unless we needed to. As a family of 5, we moved to a home/office we don’t need one yet. Most readers didn’t have a car payment. Obviously one way to save some dough is buy a more efficient car versus a truck or SUV.
Average reader payment was $166 / month
Average reader gas was $73 / month could save more with more efficient car.
Average reader Insurance was $60 / month
Total / month if you can eliminate one car $299/month
#7 Smoking, Alcohol, Coffee shops. It clearly helps if you don’t do any of these, but there is some health benefits to red wine. My father-in-law tipped me off to this gem after one of their wine tasting events. If you are looking for a good “cheap” red wine, the Crane Lake Malbec is very good for the price $5. Tough to beat. For the majority of us who are not wine afficianatos you would be hard pressed to tell the difference from an expensive red. If you drink coffee you can save a bundle by making it at home. I now prefer good home brewed organic coffee to anything in a coffee shop.
The average reader who smoked cost $150 / month.
The average reader alcohol cost $81.68 / month.
The average reader hit the coffee shops cost $19 / month.
#8 Medical Doctor and Insurance Costs. Unfortunately, this can vary wildly. It completely depends on your health. Which ultimately comes back to what groceries you eat and if you exercise. The average readers insurance cost was $120 / person / month.
Family of four = $480 / Month You can’t really drop insurance, but you may be able to shop and find a better rate or go with a HSA.
Doctor Visit average $112 every 3 months = $37.33 / month with paying out-of-pocket. This can vary a lot depending on your deductible. I carry a very high deductible because I don’t get sick and I can’t remember the last time I went to a medical doctor. I realize that isn’t the norm for most people so we will add a little expense every 3 months.
#9 Shopping to Shop. Buying impulse items just to go buy something. The average reader $70 / month.
#10 Eating lunch or dinner out. This is an area you can save a bundle. I know many people who eat out for lunch everyday. For one it is unhealthy and two it is expensive compared to brown bagging. Bring food from home and your health and wallet will thank you. The average reader spent $85 / month.
#11 Stop your magazine and newspaper subscriptions. Most news is available online for free. I don’t read the paper. Even in the small town I live in, I don’t read the paper. If anything big happens someone will tell you. The average reader spends $37 / month on magazines and newspaper.
#12 Travel / Vacation This is a tough one. If you need to save money this is a place to cut back because it isn’t essential to life, but… There is a huge benefit to getting away. Your brain, your relationships, your body all get a rest and improve. For example, before our last trip I had a lingering hip problem that was quite serious for about 2 days. One of those days I had to cancel and reschedule patients. After 4 days doing nothing and I mean doing nothing but watching the ocean and making sand drawings, I came back 100%. There is a cost to taking vacations and a cost to not taking them. So the trick may be to take inexpensive vacations to local destinations, bring your own food and if you have the ability to camp, even better. My wife and I started camping before Chiropractic school and we traveled for a month for about $500 before we had kids. Being in nature is a wonderful way to keep inner peace and practice simplicity. I was in a lecture with Denis Waitley a number of years ago and he was reflecting on his 60+ years of life and what he would do differently. Denis is most famous for being Mary Lou Rettons psychologist plus a whole host of other celebrities. The one thing he wished was that he took more 3 and 4 day “vacations” than just one big 2 week vacation. That can be an extra day just walking in the woods. Try www.budgettravel.com for other ideas. It may be time for a good old fashion road trip with the kids.
The average reader spent $707 dollars on vacations last year.
#13 Look at your cell phone plan. The last issue of Consumer Reports did a big spread on plans. Check the Library. The average couple could save over $200 a year by going with a pre-paid phone. A pre-paid phone costs about $30. For the vast majority of people a complicated “smart” phone takes time and complicates life rather than simplify it. For the younger generation I know texting is a must, but for many of you it is irrelevant. I know some will argue that they must have every bell and whistle and that may be true, but analyze whether it is really saving you time and money for that matter. It’s O.K. if it isn’t. Just find something cheaper. The average reader spent $55 a month. For argument sake lets save $25 by going pre-paid.
#14 Land-line phones can often be gotten rid of. The average reader spends $27.83
Total = $13,120 a year in savings for either changing or stopping many of the above suggestions. Some of you spend less than the above numbers and others spend much more. These are only averages and possibilities. This is not for everyone and some people can’t make changes, but there be some ideas that you can incorporate. By no means do you need to live in a box to still live well. Sometimes, when push comes to shove, you need to save some money somewhere. I hope this helps some of you.
Bonus Ideas
-Cutting back at the vending machines
-Keeping tires properly inflated
-Add insulation to the Attic
-Buy a smaller house
-Use the library more
-Walk more / Bike
-Do errands in one trip
-Don’t use credit cards ever!
It can be done if you want to. In one year, I went from commuting 45 minutes to a second office to living in a home/ office. We sold a house, a business, a car, and moved to a central location in town and now lead a vastly simpiler life. I thought I’d go crazy, but it is one of the best things we ever did. I see my kids a lot more and we walk to most of their activities.
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